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BW Businessworld

AIG Finance Arm Has

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In a regulatory filing, American General Finance Corp said its quarterly loss increased sevenfold to $227.2 million from $31.8 million a year earlier, as revenue declined 32 percent.
American General has lost $467.8 million this year, after losing more than $1.3 billion in 2008. It has lost money for six straight quarters.
The job and branch cuts represent about 11 percent of the year-end totals that the Evansville, Indiana-based company had reported. American General said it ended 2008 with 7,900 employees and 1,374 offices, a separate filing shows.
"We may implement further measures to preserve our liquidity and capital, including additional on-balance sheet securitizations, portfolio sales, expense reductions, branch closures, and reductions in production," the company said. It said it expects to have enough liquidity for at least a year.
An AIG spokeswoman said American General decided on the job cuts in May, and attributed them to the economic downturn.
AIG posted a second-quarter profit last week. The New York-based insurer is trying to sell assets to help repay the government, after accepting a series of federal bailouts totaling roughly $180 billion.